If you’re an Aussie homeowner tired of watching your energy bills climb—especially your gas bill—you’re not alone. Many Australians are fed up with rising gas prices, while billions of dollars’ worth of our gas gets shipped overseas, often royalty-free to multinational companies.
Meanwhile, our gas prices rise as we’re exposed to international market fluctuations.
It’s no wonder more Aussies are considering switching to energy-efficient alternatives like solar or heat pump water heaters. These systems don’t just offer long-term savings, but also provide a cleaner, more self-reliant way to heat water.
So, is it worth upgrading? Seems like a no-brainer, but let’s break it down anyway.
We’ve already touched on the frustration around rising gas bills, so there’s the obvious benefit of the energy savings. Water heating can account for up to 25% of your household’s energy use, so switching to a more efficient system can significantly cut your bills over time.
And, with electricity prices also fluctuating, having a system that uses renewable energy or works efficiently by extracting ambient heat (more on heat pumps soon) puts you back in control. That feeling is worth it alone.
Then, there’s the environmental factor. Both these systems, solar and hot water heat pump, can dramatically lower emissions compared to traditional gas or electric heaters. They’re a massive contributor to a more sustainable home. And this is without sacrificing comfort.
Finally, there’s the incentives. Did you know that the Australian government offers various rebates and Small-scale Technology Certificates (STCs) for eligible systems? These can shave hundreds (sometimes thousands) off the upfront cost. So, not only are these systems better for your wallet and the planet than electric and gas hot water systems, they’re now more accessible than ever.
Let’s kick it off with the more familiar of the two.
Solar hot water systems harness the sun’s energy to power your home. Here’s how solar hot water works:
Heat pump systems are newer to the mainstream residential market than solar hot water systems, especially in Australia. It’s a more complex process but it works where solar hot water systems do not.
Now that you know how solar and heat pump water heaters work, let’s weigh up the pros and cons of each system. We’ve already established that solar is ideal for sunny climates, while heat pumps perform well in cooler or shaded areas. However, other factors might make one option a better fit for your home and lifestyle than the other.
Here are the pros and cons of a solar hot water system:
Pros:
Cons:
Here are the pros and cons of a heat pump hot water system:
Pros:
Cons
Let’s talk dollars. While each varies, solar hot water systems typically cost between $3,000 and $7,000. Despite the steep upfront cost, you must factor in that it will eventually pay for itself, especially if you live in an ideal climate.
As for a heat pump unit, they usually cost $2,500 to $4,000 to install. That might sound like a lot upfront, but don’t forget about government rebates and STCs (Small-scale Technology Certificates), which also apply to solar and these can knock hundreds off your total.
So, how long before you can see your return on investment? Over time, both systems will significantly lower your energy bills, with payback periods ranging from 3 to 7 years, depending on usage and climate.
So, you might be thinking these solutions sound like a no-brainer, but which hot water system replacement is right for you? The answer depends on a few key factors.
Firstly, consider your climate. In Australia, we are blessed with some of the most powerful sun in the world. As a result, it makes sense to take advantage of this natural energy source with solar power, especially if you have a decent roof space.
However, not all of our great big island has plentiful sun all year round (we’re looking at you Melbourne), so if you’re in an area that is cooler and cloudier, you might want to consider a heat pump system. Moreover, if your house gets shaded, by either large trees or buildings, you could also benefit from heat pump units.
Finally, think about your current system’s age and type, your household size, how much hot water you use, and of course, your budget and long-term plans. Everyone’s situation is different, and what saves one family money might not suit another.
Hopefully by now, you can see that both solar and heat pump water heaters offer big wins in efficiency, sustainability, and long-term savings over gas and electric hot water systems. You should also have a fairly good idea of which is the right choice for your needs.
Just to drill it home—if you’ve got plenty of sun and roof space, solar could be a great investment. If you live in a cooler area or don’t have ideal roof conditions, a heat pump may be right up your alley.
At the end of the day, it’s not just about cost, but finding the types of hot water systems that suits your home, lifestyle, and energy goals.
Still unsure which system is best for you? The best thing you can do is speak to a licensed installer about hot water system replacement or upgrades. They can assess your set-up and walk you through options, rebates, and expected savings.
Visit Same Day Hot Water Service to get a quote, check your eligibility for rebates, or book your upgrade today.
It depends on your climate, roof space, budget, and whether you want maximum efficiency (solar hot water heaters) or reliable performance in all conditions (heat pump hot water).
Heat pump systems can be noisy and slightly less efficient than solar heated systems in very sunny regions.
Solar water heaters rely on consistent sunlight and may need a backup on cloudy days or in shaded areas for decent hot water consumption.